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There is, however, some risk associated with issue. The proposed move calls for 34 sales personnel and 5 managers. If established number do not make the required six calls per day and can only maintain 4 calls per day, additional sales persons and managers would need to be hired. Furthermore, $700,000 was established as the cost to run a single warehouse. Given the fact that Chesterton would be new to this operation, a “learning” curve to meet the minimum cost of running a single warehouse would take one to three years, conservatively speaking. Increased cost above and beyond $700,000 is a real concern and would increase operating cost, consequently decreasing return on assets...
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